GSK Gives Up Australian Rights

Leading pharmaceutical company GlaxoSmithKline has announced that it is selling the rights of many of its products in Australia to another pharmaceutical company.

GSK said Aspen Pharmacare Holdings will buys 25 products for a whopping US$270 million (or $258 million). These are products that GSK is no longer promoting these brands, which include antibiotics Amoxil and Timentin, and Valtrex (a treatment for genital herpes).

Last year, these brands earned about $130.2 million in Australia alone. In the first half of 2012, the brands made $48.6 million.

According to GSK, the revenue of these brands have dropped in the last few years because of Australia government’s implementation of drug price cuts in the country and the intense generic competition.

The British pharma company also said it is expecting the transaction to be complemented by the end of this year. It added that net profit from the sale would be close to $190 million.

Aspen Pharmacare Holdings is based in South Africa. It promotes and markets generic and branded medicines to 100 countries worldwide.